BTC Volatility Indicator Hints At New Rally Coming Soon

Bitcoin has been all over the latest cryptocurrency news this week for its stability and quietness. Ever since it posted the 2019 high at $13,880 on June 26, BTC has shown the market that it is in a steady pullback. However, it seems that this won’t be for long, at least if we see stats related to one BTC volatility indicator.

Experienced traders nowadays call the price action “choppy” and believe that if it continues like this, BTC could even decline to the $7,000 and $8,000 region. The coming altcoin news show that many cryptocurrencies are tied to Bitcoin’s potential – which is why it is important for the market to reverse now. However, one BTC volatility indicator hints that the days of dull trading are after all numbered.

As it stands, Bitcoin appears ready to make a big move soon and is leaning towards the side of the bulls. We are talking about the Bitcoin Historical Volatility Index (BVOL) which is the BTC volatility indicator that has been on a downward spiral ever since it skyrocketed from a low of 4.38 to a high of 14.06 on the same day – June 26. This was the day when BTC printed its 2019 high and was all over the best cryptocurrency news sites.

Before, the index spiked by 9.68 points in one day and consolidated at support of 2.00 for about a month. The BTC volatility indicator had some upticks at that time – but nothing compared to the June 26 scent. Nonetheless, 2.00 has always been a key level for the index – and is a crucial level right now.

Currently, the BVOL is about to drop to 2.00 which is a level where Bitcoin usually reacts. This BTC volatility indicator usually favors the bulls when the index falls to 2.00 – however there are also chances that bears may regain control.

Whatever the case is, 2.00 is a BTC volatility indicator where we can expect a change and resumption in volatility. Whether up or down, market participants are about to make their decision soon.

The volume of BTC has been declining since June 26, and the falling wedge in the trading range shows that a bullish continuation pattern is probably building up. All in all, we will be lucky if this great setup turns true, indicating a big move up for the most dominant cryptocurrency.